TAIPEI (Taiwan News) — Taiwan’s stock market closed higher on Tuesday, lifted by ongoing government support and renewed optimism over Nvidia’s resumed shipments of downgraded artificial intelligence chips to China.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, closed up 220.97 points at 22,835.94. Turnover totaled NT$310 billion (US$10.5 billion), according to CNA and CTEE.
Investor confidence was boosted by confirmation Monday that the National Stabilization Fund will continue its market support operations. Established in 2000, the fund intervenes during periods of significant market volatility to stabilize prices.
TSMC closed 1.37% higher at NT$1,110, following reports that Nvidia will resume shipments of its downgraded H20 chips to China. Foxconn rose 1.56% to NT$163, and MediaTek climbed 0.72% to NT$1,395.
The printed circuit board (PCB) sector also saw advances. Companies in the copper-clad laminate segment, such as Elite Material, led the rally, with Career Technology, Nan Ya PCB, and Fulltech reaching their daily limit-up levels.
PCBs, considered the foundation of electronic devices, are built with intricate copper wiring that connects components and forms the foundation of most electronic circuits. Copper-clad laminates serve as the structural and conductive base of PCBs, allowing for electrical connectivity.
Optimism also rose in the integrated circuit substrate market, particularly around demand for Ajinomoto Build-up Film used in AI servers. Unimicron Technology, Nanya PCB, and Kinsus Interconnect Technology all reached their daily trading limit.
ABF, developed by Japan’s Ajinomoto, is crucial for connecting semiconductor chips to PCBs in advanced packaging.
Chi Far Securities Investment Vice President Jung Yi-shen (容逸燊) said local sentiment was buoyed by gains on Wall Street and the National Stabilization Fund’s reassurance. TSMC breaking above NT$1,110 provided a psychological boost, while Nvidia’s chip news further lifted stocks in the AI supply chain.
Looking ahead, Jung advised investors to watch several key developments. These include how the market performs when Taiwan’s stock index futures settle on Wednesday, and whether foreign investors will adjust their trading strategies.
Additionally, TSMC’s upcoming investor conference on Thursday may provide insights into semiconductor industry trends. Other factors that could influence market direction include exchange rate movements and progress in US-Taiwan trade talks.
Jung also noted that while foreign investors continue to hold significant short positions in Taiwan index futures, typically bets that the market will fall, these are primarily used as hedging tools rather than signals of bearish sentiment. Some institutional investors may be waiting for the outcomes of the July 26 recall votes before making major decisions, Jung said.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
